v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
Lessee

The Company leases office facilities under various cancellable and non-cancellable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

The following table summarizes the impact of the Company's leases in its financial statements (in thousands):

Balance SheetFinancial statement captionJune 30, 2025December 31, 2024
Right-of-use asset - operatingOther assets$10,014 $10,645 
Lease liability - operatingAccounts payable and other accrued expenses$13,573 $14,331 
Three Months Ended June 30,Six Months Ended June 30,
Income StatementFinancial statement caption2025202420252024
Operating lease cost(1)
Administrative expenses$789 $732 $1,546 $1,468 
(1)    Includes short-term leases that are immaterial.

Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows was $1.5 million and $1.0 million for the six months ended June 30, 2025, and 2024, respectively.

The following table includes supplemental information related to the Company's operating leases:

June 30, 2025
Weighted-Average Remaining Lease Term
8.2 years
Weighted-Average Discount Rate5.66 %
Lessor

Operating Leases

As of June 30, 2025, the Company has deferred revenue balances related to upfront payments received in return for reduced lease rates during the lease term. These amounts will be amortized into revenue as follows (in thousands):

Years ending December 31,
2025 (Remaining 6 months)$28,308 
202642,580 
202716,753 
202815,392 
202913,837 
2030 and thereafter29,382 
Total$146,252 

Finance Leases

The following table summarizes the components of the net investment in finance leases (in thousands):
June 30, 2025December 31, 2024
Future minimum lease payment receivable(1)
$1,878,600 $1,989,859 
Estimated residual receivable(2)
269,214 269,090 
Gross finance lease receivables(3)
2,147,814 2,258,949 
Unearned income(4)
(621,303)(673,137)
Net investment in finance leases(5)
$1,526,511 $1,585,812 
(1)     There were no executory costs included in gross finance lease receivables as of June 30, 2025 and December 31, 2024.
(2)    The Company's finance leases generally include a purchase option at nominal amounts that is reasonably certain to be exercised, and therefore, the Company has immaterial residual value risk for assets.
(3)    The gross finance lease receivable is reduced as billed to customers and reclassified to accounts receivable until paid by customers.
(4)     There were no unamortized initial direct costs as of June 30, 2025 and December 31, 2024.
(5)    One major customer represented 94% and 93% of the Company's finance lease portfolio as of June 30, 2025 and December 31, 2024, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods.
The Company’s finance lease portfolio customers are primarily large international shipping lines. In its estimate of expected credit losses, the Company evaluates the overall credit quality of its finance lease portfolio. The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and maintains allowances, if necessary, for doubtful accounts. These allowances are based on, but not limited to, historical experience which includes stronger and weaker economic cycles, each lessee's payment history, management's current assessment of each lessee's financial condition, consideration of current economic conditions and reasonable market forecasts.
Leases Leases
Lessee

The Company leases office facilities under various cancellable and non-cancellable operating leases, most of which provide extension or early termination options. The Company's lease agreements do not contain any residual value guarantees or material restrictive covenants.

The following table summarizes the impact of the Company's leases in its financial statements (in thousands):

Balance SheetFinancial statement captionJune 30, 2025December 31, 2024
Right-of-use asset - operatingOther assets$10,014 $10,645 
Lease liability - operatingAccounts payable and other accrued expenses$13,573 $14,331 
Three Months Ended June 30,Six Months Ended June 30,
Income StatementFinancial statement caption2025202420252024
Operating lease cost(1)
Administrative expenses$789 $732 $1,546 $1,468 
(1)    Includes short-term leases that are immaterial.

Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows was $1.5 million and $1.0 million for the six months ended June 30, 2025, and 2024, respectively.

The following table includes supplemental information related to the Company's operating leases:

June 30, 2025
Weighted-Average Remaining Lease Term
8.2 years
Weighted-Average Discount Rate5.66 %
Lessor

Operating Leases

As of June 30, 2025, the Company has deferred revenue balances related to upfront payments received in return for reduced lease rates during the lease term. These amounts will be amortized into revenue as follows (in thousands):

Years ending December 31,
2025 (Remaining 6 months)$28,308 
202642,580 
202716,753 
202815,392 
202913,837 
2030 and thereafter29,382 
Total$146,252 

Finance Leases

The following table summarizes the components of the net investment in finance leases (in thousands):
June 30, 2025December 31, 2024
Future minimum lease payment receivable(1)
$1,878,600 $1,989,859 
Estimated residual receivable(2)
269,214 269,090 
Gross finance lease receivables(3)
2,147,814 2,258,949 
Unearned income(4)
(621,303)(673,137)
Net investment in finance leases(5)
$1,526,511 $1,585,812 
(1)     There were no executory costs included in gross finance lease receivables as of June 30, 2025 and December 31, 2024.
(2)    The Company's finance leases generally include a purchase option at nominal amounts that is reasonably certain to be exercised, and therefore, the Company has immaterial residual value risk for assets.
(3)    The gross finance lease receivable is reduced as billed to customers and reclassified to accounts receivable until paid by customers.
(4)     There were no unamortized initial direct costs as of June 30, 2025 and December 31, 2024.
(5)    One major customer represented 94% and 93% of the Company's finance lease portfolio as of June 30, 2025 and December 31, 2024, respectively. No other customer represented more than 10% of the Company's finance lease portfolio in each of those periods.
The Company’s finance lease portfolio customers are primarily large international shipping lines. In its estimate of expected credit losses, the Company evaluates the overall credit quality of its finance lease portfolio. The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement and maintains allowances, if necessary, for doubtful accounts. These allowances are based on, but not limited to, historical experience which includes stronger and weaker economic cycles, each lessee's payment history, management's current assessment of each lessee's financial condition, consideration of current economic conditions and reasonable market forecasts.